SOUTHLAND - QUARTERLY REGIONAL LABOUR MARKET UPDATE - JUNE 2007

EXECUTIVE SUMMARY

The labour force participation rate in Southland stood at 71.7% during the year to June 2007 up from 71.4% the year before. In comparison, the national average participation rate was 68.5% for the year to June 2007.

The unemployment rate in Southland remained the same at 2.7% for the year to June 2007 (national average: 3.7%).

There were 1,149 working aged people receiving unemployment benefits from Work and Income in the Southland region at the end of June 2007.

Advertised vacancies in Southland declined by 2.9% in the year to June 2007, compared with a fall of 6.4% at the national level.

BACKGROUND

This report includes information relating to the area covered by the Southland region as described below:

The Southland regional council area has a population of 90,876 and is located to the south of Otago. It has 3 territorial authority areas from north to south: Southland with a population of 28,440; Gore with a population of 12,108; and Invercargill with a population of 50,325.
Source: Population Census 2006, Statistics New Zealand

This report is a quarterly update of current labour market conditions in the Southland region.The sources of statistics are the Statistics New Zealand Household Labour Force Survey (HLFS), Ministry of Social Development (MSD) and the Department of Labour Job Vacancy Monitor (JVM). To counter the effects of seasonality and low sample size when making comparisons over time, the figures presented are averages for the year up to the quarter indicated, unless otherwise stated.

Table 1: Key labour market data for the Southland region

	Southland		New Zealand
HLFS Indicator	year to June 2006	year to June 2007	year to June 2006	year to June 2007
Participation rate, ann ave	71.4%	71.7%	68.3%	68.5%
Employment rate, ann ave	69.5%	69.8%	65.8%	65.9%
Unemployment rate, ann ave	2.7%	2.7%	3.7%	3.7%

Table 1b: Key labour market data for the Southland region

Unemployment Beneficiary Indicator		Southland		New Zealand
		End of June 2007		End of June 2007	% change since
			share in NZ		June 2003
Working aged UB/UBH recipients (aged 18-64)		1,149	5.0%	23,159	-76.7%

Table 1c: Key labour market data for the Southland region

JVM Indicator		Southland		New Zealand
		year to June		year to June
		2006	2007	2006	2007
Advertised job vacancy counts, ann ave % change		3.3%	-2.9%	-4.0%	-6.4%

Source: HLFS, Statistics New Zealand; MSD; JVM, Department of Labour

In the year to June 2007 the working-age population in the Southland region was 74,100. The labour force participation rate was 71.7% while 53,200 people were in the labour force and 20,900 people were 'not in the labour force'. Of those people who were in the labour force, 2.7%, or 1,400 were unemployed and 51,800 were employed.
Source: HLFS, Statistics New Zealand

Notes:

1. Participation rate: proportion of the working-age population that is in the labour force.
2. Employment rate: proportion of the working-age population that is employed.
3. Unemployment rate: proportion of the labour force that is unemployed.

POPULATION

The working-age population in the Southland region is estimated at 74,100 in the year to June 2007.

LABOUR FORCE

The participation rate in Southland stood at 71.7% during the year to June 2007 up from 71.4% the year before. In comparison, the national average participation rate was 68.5% for the year to June 2007.

The number of people in the labour force in the Southland region is estimated to be 53,200 in the year to June 2007.

Figure 1: Regional and national trends in the participation rate

annual average, %	Southland	New Zealand
Jun 98	65.7	65.5
Jun 99	68.4	65.3
Jun 00	65.8	65.3
Jun 01	64.7	65.8
Jun 02	66.3	66.6
Jun 03	66.4	66.4
Jun 04	67.7	66.6
Jun 05	70.7	67.5
Jun 06	71.4	68.3
Jun 07	71.7	68.5

Source: HLFS, Statistics New Zealand

For a more detailed explanation of the labour force and the participation rate, go to the Department of Labour publication: workINSIGHT, issue 5, page 35, The Labour Market Explained: The Labour Force Participation Rate at www.workINSIGHT.govt.nz.

EMPLOYMENT

The employment rate (the proportion of the working-age population that is employed) in Southland stood at 69.8% during the year to June 2007 up from 69.5% the year before. In comparison, the national average employment rate was 65.9%.

Employment in the Southland region was 51,800 in the year to June 2007.

Figure 2: Regional and national trends in the employment rate

annual average, %	Southland	New Zealand
Jun 98	61.6	60.9
Jun 99	63.6	60.5
Jun 00	62.0	61.1
Jun 01	62.1	62.2
Jun 02	64.0	63.1
Jun 03	64.0	63.1
Jun 04	65.7	63.8
Jun 05	68.0	65.0
Jun 06	69.5	65.8
Jun 07	69.8	65.9

Source: HLFS, Statistics New Zealand

For a more detailed explanation of employment, go to the Department of Labour publication: workINSIGHT, issue 4, page 32, The Labour Market Explained: Employment at www.workINSIGHT.govt.nz.

UNEMPLOYMENT

The region's unemployment rate remained steady at 2.7% in the year to June 2007. In comparison, the national average unemployment rate was 3.7% for the year to June 2007.

The number of unemployed people in the region (as measured by the official statistics) is estimated at 1,400 for the year to June 2007.

Figure 3: Regional and national trends in the unemployment rate

annual average, %	Southland	New Zealand
Jun 98	6.4	7.1
Jun 99	6.9	7.3
Jun 00	5.7	6.4
Jun 01	4.1	5.5
Jun 02	3.5	5.2
Jun 03	3.6	5.0
Jun 04	3.1	4.3
Jun 05	3.8	3.7
Jun 06	2.7	3.7
Jun 07	2.7	3.7

Source: HLFS, Statistics New Zealand

The Household Labour Force Survey provides an estimate of all persons in the working-age population who during a particular week were without a paid job, available for work and had either actively sought work in the previous four weeks, or had a new job to start within four weeks of the survey week. These numbers will not align exactly with numbers receiving an income tested benefit such as Unemployment Benefit (see next page). There are a range of reasons for this. For example, recipients of income tested benefits can be employed part time up to specified income limits, whereas a respondent to the Household Labour Force Survey must have worked less than an hour during the week being surveyed to count as officially unemployed.

UNEMPLOYMENT BENEFITS

The Ministry of Social Development has recently begun to make information on numbers receiving social security benefits available for Territorial Local Authorities. This information also supports display by Regional Council area, the same geographic basis on which other information in this report has been displayed. It will be some time yet before this is available as an annual time-series, so comparisons over time are provided for New Zealand as a whole.

There were 1,149 working aged people receiving unemployment benefits from Work and Income in the Southland region at the end of June 2007. Their characteristics are shown in the next table.

Table 2: Working aged unemployment benefit recipients (aged 18-64) in the Southland region and nationally during June 2007

	Region		New Zealand		Region's share of New Zealand (%)
	Share (%)	Number	Share (%)	Number
Male	68.8	790	67.1	15,539	5.1
Female	31.2	358	32.9	7,619	4.7
Maori	22.4	257	34.0	7,874	3.3
Pacific People	2.4	27	7.6	1,760	1.6
18-24 years	23.1	265	18.0	4,168	6.4
25-39 years	31.4	360	32.8	7,596	4.7
40-54 years	26.4	303	24.3	5,627	5.4
55-64 years	19.1	219	24.9	5,766	3.8
Total		1,149		23,159	5.0

Source: MSD

These values occur against a backdrop of significant reductions in the number of current unemployment benefits over time at the national level.

Figure 4: Clients receiving Unemployment Benefits for the whole of New Zealand, June 2003 - June 2007

	Maori	NZ European	Pacific Island	Other
June 2003	32,104	43,936	7,960	15,327
June 2004	22,988	29,379	5,428	10,960
June 2005	17,659	21,078	4,022	7,955
June 2006	13,482	16,932	3,175	6,163
June 2007	7,873	9,776	1,753	3,757

Source: MSD

Notes: Other includes not specified. Values for the end of the June quarter.

JOB VACANCY TRENDS

The Job Vacancy Monitor (JVM) is a monthly analysis of job advertisements in selected editions of 25 major newspapers around New Zealand and three websites advertising IT vacancies. Over time, JVM informs us about the tightness of the labour market.

Advertised vacancies in Southland declined by 2.9% in the year to June 2007, compared with a fall of 6.4% at the national level.

Advertisements for highly skilled (legal/admin/managers & professionals) occupations in Southland grew by 6.6% in the year to June 2007.

Advertisements for skilled (ass.profs/tech & trades workers) occupations in Southland declined by 18.0% in the year to June 2007.

Advertisements for semi-skilled / elementary (clerks, serv/sales workes, agr/fish workers, plant/mach operators & elementary) occupations in Southland declined by 0.1%in the year to June 2007.

Figure 5: Regional and national trends in vacancy counts in the Southland region

annual average % change	Year to June 2006	Year to June 2007
Region	3.3	-2.9
New Zealand	-4.0	-6.4

Source: Job Vacancy Monitor, Department of Labour

Figure 6: Regional trends in vacancy counts in the year to June 2007 by occupation group for the Southland region.

annual average % change	Year to June 2006	Year to June 2007
Legislators / Managers	15.0	-11.9
Professionals	0.2	16.4
Highly skilled	5.0	6.6
Ass. Profs / Technicians	28.9	-18.8
Trades Workers	-20.7	-17.1
Skilled	1.0	-18.0
Clerks	9.4	-1.8
Services / Sales Workers	-0.5	-3.4
Agr and Fishery Worker	14.7	-2.1
Plant and Mach Operators	-0.5	1.4
Elementary Occupations	-17.8	20.4
Elementary / Semi skilled	3.8	-0.1

Source: Job Vacancy Monitor, Department of Labour

For a more detailed labour market outlook for New Zealand as a whole, go to the Department of Labour’s Labour Market Outlook Report here.

For more detailed results from the Job Vacancy Monitor, go to the Department of Labour’s Job Vacancy Monitoring Reports here.

HIGH VACANCY OCCUPATIONS

Below is a list of occupations from the JVM that have the highest number of vacancies (high vacancy occupations), and those occupations that have shown the highest growth in advertised vacancies in terms of percentage change (top percentage growth occupations) and numerical change (top numeric growth occupations) in Southland.

The number of vacancies is measured as the total number of vacancies advertised in the twelve months to June 2007. The growth in vacancies compares the number of advertised vacancies in the 12 months to June 2007 with the previous 12 months. Percentage growth figures are only included if at least 24 vacancies occurred in the year to June 2006. Numeric growth figures are only included if vacancy growth in the year to June 2007 measured at least 10.

Table 3: Southland: Total vacancies and growth in all occupations in the 12 months to June 2007

Rank	High Vacancy Occupations	No. of vacancies	Top Percentage Growth Occupations	% Growth	Top Numeric Growth Occupations	Numeric Growth
1	Dairy Farmer, Dairy Farm Worker	226	Registered Nurse	36%	Heavy Truck or Tanker Driver	26
2	Sales Assistant	88	General Labourer	18%	Sheep Farmer, Sheep Farm Worker	16
3	Care Giver	58	Kitchenhand	4%	Hairdresser	16
4	Heavy Truck or Tanker Driver	46	Care Giver	4%	Cleaner	15
5	Registered Nurse	45	-	-	Sampling Officer	13
6	Crop and Livestock Farmer, Worker	43	-	-	Registered Nurse	12
7	General Labourer	40	-	-	Information Clerk and Other Receptionist	12
8	Cleaner	38	-	-	Teacher Aide	12
9	General Clerk	37	-	-	Secondary School Teacher	11
10	Mixed Livestock Farmer, Mixed Livestock Farm Worker	35	-	-	Forest Hand	10
11	Information Clerk and Other Receptionist	34	-	-	Travel Attendant	10
12	Sheep Farmer, Sheep Farm Worker	33	-	-	-	-
13	Hairdresser	28	-	-	-	-
14	Kitchenhand	26	-	-	-	-
15	Early Childhood Teacher	26	-	-	-	-
16	Primary School Teacher	23	-	-	-	-
17	Child Care Worker	23	-	-	-	-
18	Shepherd or Musterer	23	-	-	-	-
19	Secondary School Teacher	22	-	-	-	-
20	Sales Representative	22	-	-	-	-

 

GLOSSARY

Working-age population: population aged 15 years and over.

Labour force: number of people who are either in work or are available and actively seeking work (that is, employed or unemployed as defined below).

Employment: number of people in work of one hour or more per week.

Unemployment: number of people who are not in work, but who are available for and actively seeking work.

Not in the labour force: number of people who are not in work and are either not available or not actively seeking work (that is, they are not employed and not unemployed). This includes for example, retired people, students and people at home with children.

Labour force participation rate: proportion of the working-age population that is in the labour force.

Unemployment rate: proportion of the labour force that is unemployed.

Employment rate: proportion of the working-age population that is employed.

Job Vacancy Count: a monthly count of job advertisements in selected editions of 25 major newspapers around New Zealand and three websites advertising IT vacancies, published by Department of Labour (/publications/jvm/job-ad-monthly-report.asp).

Highly skilled workers: legislators, administrators and managers, and professionals.

Skilled workers: technicians and associate professionals, and trades workers.

Semi-skilled/elementary: clerks, services/sales workers, plant/machinery workers, and elementary workers.

Annual average: the average for a whole year (eg year to December 2006).

Annual average percentage change: the percentage change between the average for a whole year (eg the year to December 2006) and the previous year (eg the year to December 2005). Unless stated, all growth rates are annual average percentage changes.

LINKS TO OTHER LABOUR MARKET REPORTS

Skills in the labour market: summarises quarterly information on skill shortages, primarily focused on the Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER) and the Job Vacancy Monitor (JVM) from the Department of Labour.

Labour market outlook: provides an outlook for the labour market over the next two years. The forecasts are detailed in a table and accompanied by descriptive analysis and a table of comparative forecasts is presented in an Appendix.

Employment/unemployment: a report that informs about the results from the latest Household Labour Force Survey released by Statistics New Zealand.

Wage growth: a report that examines the wage growth measures for the latest quarter from the Labour Cost Index (LCI) and Quarterly Employment Survey (QES) released by Statistics New Zealand. A technical note and data tables are included in the appendices.

Maori labour market outcomes: a 6-monthly update focusing on changes in the past six years and prospects for the next two years. Data are from the quarterly Household Labour Force Survey (HLFS) from Statistics New Zealand amongst others.

Contact: Josie Vidal Department of Labour Communications Advisor (04) 915-4135

Disclaimer: The Department of Labour has made every effort to ensure that the information contained in this report is reliable, but makes no guarantee of its accuracy or completeness and does not accept any liability for any errors. The information and opinions contained in this report are not intended to be used as a basis for commercial decisions and the Department accepts no liability for any decisions made in reliance on them. The Department may change, add to, delete from, or otherwise amend the contents of this report at any time without notice. The material contained in this report is subject to Crown copyright protection unless otherwise indicated. The Crown copyright protected material may be reproduced free of charge in any format or media without requiring specific permission. This is subject to the material being reproduced accurately and not being used in a derogatory manner or in a misleading context. Where the material is being published or issued to others, the source and copyright status should be acknowledged. The permission to reproduce Crown copyright protected material does not extend to any material in this report that is identified as being the copyright of a third party. Authorisation to reproduce such material should be obtained from the copyright holders.